40-year-old Tampa steel company sells for $79.5 million

Russel Metals, a Toronto-based metal distribution company, is buying Tampa Bay Steel Corp., agreeing to pay $79.5 million for the 40-year-old local company.

Russel Metals announced the deal in a statement, saying the sale price includes working capital, buildings and equipment, and real estate.

“Tampa Bay Steel has a long standing and well-respected management team in the central Florida region, and its business includes significant value added-processing and non-ferrous products,” the company says in the statement.

The deal is expected to close next month.

Tampa Bay Steel has been in business for 40 years and operates out of a facility off of Orient Road at 6901 East 6th Ave.

The company says on its website that it specializes in metal and steel processing and distribution, making metal parts for businesses.

According to Russel Metal’s statement, Tampa Bay Steel’s average annual revenue for the past five years was $115 million and that it has invested more than $20 million on equipment and facility expansion in the past three years.

But the company is more than about making steel.

Tampa Bay Steel has a ministry page on its website stating its goal to “impact people’s lives now and for eternity.” That includes hosting bi-weekly Bible studies for employees, providing grants to local organizations, giving employees time off to volunteer and sponsoring volunteer events at Metropolitan Ministries and Habitat for Humanity.

John Reid, Russel Metal’s president and CEO, says in the statement that buying Tampa Bay Steel will allow it to extend its footprint into the Florida market “with an experienced management team and a culture that is aligned with ours.”

“Our approach to acquisitions is to focus on opportunities that are complementary from a product mix and geographic perspective, but also aligned with our performance-based and decentralized culture,” he says.

Russel’s operations span North America and its third quarter revenue was $1.1 billion Canadian.

The purchase of Tampa Bay Steel will be financed with cash on hand or by drawing from its credit facility.